Posted on June, 8, 2023 at 09:21 am
The share of maize in East Africa cross-border trade increased to 48 percent in January to March 2023 from 34 percent in October to December 2022 because of below-average production in the structural deficit-producing countries that attracted supplies from the adjacent surplus-producing countries.
Trade in maize grain was exceptionally high because of low production and higher prices in the main consuming Kenyan market that pulled supplies from Uganda. Although rainfall was below average in Uganda, the amount was still conducive for maize production in the north-central and western areas.
Staple food prices followed seasonal patterns across key reference markets in the region but were significantly higher than the average because of high production and transport costs.
Livestock trade was high in the first quarter of 2023, driven by higher demand for religious festivities in the region and the Middle East.
Cross-border trade in East Africa is expected to increase typically in the second quarter and will be exacerbated by delays in sourcing cheaper supplies from overseas by Kenya, local currency depreciation, high global grain prices, and shipping costs.
Source: ReliefWeb